Many home buyers, especially who buy homes for the first time are very much excited and the same time nervous at the likelihood of purchasing a home   sitting in the money lender’s office, go through tons of official   paperwork, signing the documents etc and never gives a thought what they should ask the money lender before they make many essential steps towards the mortgage processes. It is the duty of the borrower to ask mortgage questions to the money lenders.

Many lenders ask you many questions concerning your background in order to ensure that you are the best to fit for the money they will be giving as a loan. There are some critical mortgage questions which you should ask the lender too. If you fail to ask mortgage lenders the right mortgage questions, there can be misunderstanding and finally loss of an important funds when you really them. By researching, asking mortgage questions and taking your own time to understand the mortgage loan you are benefited with considerable savings, both in money and pain.

Firstly, find out how long it will take to process the mortgage. If you are getting pre-approved loan to purchase a home, it may not be that difficult, but if you have already booked a home with an emergency of getting finance, this can be critical. You can lose the deal and somebody else will buy the house and you will be waiting for your turn to complete the formalities. So, it is better to save yourself from this and get a clear picture of process for your loan. These mortgage questions are very important. 

Secondly, you can ask the lender if there is any type of pre-payment penalty on the mortgage loan. That doesn’t mean you are going to off the loan now. Today you can just get the approval and then make monthly payments and sometimes in future you can pay off the balance of the loan or refinance it. In either of these cases, if there is a pre-payment penalty facility on the mortgage loan, it will become crucial. So, it is always better to know about it earlier only.

You should ask about the rate of interest not for the present, but for the next 15 to 30 years time period for which you will be paying off the installments.  Don’t forget to check the printed interest rate and conform it to the actual rates.

Also, make sure to look for any tie in clauses and do ask about that. These are clauses from the money lenders who make requirement for the homeowners, like purchasing their house owner’s insurance through a particular company etc. And sometimes these additional costs may over-weigh the benefits of low rate of interest.  If you come across like these clause, make sure to ask about it. 

Finally, read the  list of closing cost fees carefully and ask about anything that is not clear to you or things which  you just don’t understand. Don’t ever take it for granted that fees charged by all the lenders are normal or necessary. If something seems  fishy, don’t hesitate to ask about it. If you received a closing cost statement at the beginning of the loan process, and you should have a closing cost statements at the beginning of the loan process and don’t forget to ask about the payments at the end which matches in the statement.